CSRD Double Materiality: What Companies Must Report in 2026
Clarity for a changing planet — SustainabilityAwakening.com
Double materiality
Two tests, one report
Impactinside-out
Financialoutside-in
A topic is material if it passes either test.
Impact materiality
Severity drives the score
Scalehow grave
Scopehow widespread
Irremediablehow reversible
Source: ESRS 1
Financial materiality
Likelihood × magnitude
Risks and opportunities that could hit cash flows, cost of capital or access to finance.
Source: ESRS 1
The standards
10 topics to screen
EnvironmentE1–E5
SocialS1–S4
GovernanceG1
ESRS 1 and 2 always apply.
Who reports
Omnibus I narrowed scope
Employees1,000+
Net turnover€450M+
EU companies, from financial year 2027.
Source: Directive (EU) 2026/470
Non-EU groups
€450M EU turnover test
Plus an EU subsidiary or branch above €200M. First reports cover FY2028, due in 2029.
Source: Omnibus I
Assurance
Limited assurance only
The move to reasonable assurance was dropped. An EU assurance standard is due by 1 July 2027.
Source: Omnibus I
Revised ESRS
60% fewer mandatory datapoints
Adopted 3 July 2026, they apply from FY2027 and allow a top-down assessment.
Source: Reg. (EU) 2026/1563
Your 2026 plan
Four moves
1. Check scope€450M test
2. Map topicsE1–G1
3. Scoreboth lenses
4. Evidencefor assurers
Your next step